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Friday, April 15, 2011

Background Information on the American Ownership Group at AS Roma

Image courtesy of Associazione Sportiva Roma, SpA.AS Roma are known as "I Giallorossi." (The Yellow and Reds.)They were founded in 1927 and have been Serie A championsthree times.

Some Background
In March 2008, I wrote an article at World Football Commentaries entitled "John J. Fisher Bids on AS Roma?"

A story on Monday, 24 January 2011 from La Roma 24 indicated that a meeting between AS Roma investor representatives and American interests would take place on Tuesday (25th) in New York. Mr. Fisher's name was mentioned in the article but not as the definitive potential buyer. The New York Mets/Giants Group had also been mentioned as potential suitors for AS Roma earlier this month in the New York Post.

American Ownership Interest in Serie A is Rare

The original article is at the bottom of this post. I have left it there for comparative purposes since it was a rare attempt at American ownership in Italian football. Last year,Tim Bartonof JMJ Holdingstried to purchase AS Bari. John Elkann, Chairman of FIAT and a majority shareholder at Juventus, was born and raised in New York City.
His grandfather was Gianni Agnelli.

"I didn't expect all of this attention. I knew about the great passion on the part of the Roma fans. It was one of the reasons that we went after this deal. I share this passion, but I never played, but my father did. He played in the American Soccer League."

Thomas DiBenedetto, President of AS Roma.

Source: il Corriere dello Sport, 15 April 2011.

According to Corriere dello Sport, it appears from my unofficial translation that the DiBenedetto Group paid €70.3 million euro for AS Roma: €60.3 million for 67% of the capital, €6 million for the training center and €4 million for "Brand Management" (which appears to be a new subsidiary.) A new organization will be comprised of 60% by DiBenedetto AS Roma and 40% by UniCredit.

Shares were valued at Euro 0,6781.1 euro = 1.4435 US dollars on 15 April 2011.
€70.3 million euro is US $101,478,050 (I'm not certain if the exchange rate was locked-in at a previous date; however, the deal is for approximately $100 million dollars, unofficially.)

"The representatives of UniCredit will reconvene by the 20th of April in the United States to sign the contracts with delegates of the American consortium."

"After a exhausting marathon that lasted two days that took place barricaded inside the Grimaldi law firm, a maximum agreement has been reached for the acquisition of 67% of the shares of the Roman club now in the hands of the Sensi family (51%) and UniCredit (49%) by a new organization with 40% held by the Piazza Cordusio Bank (UniCredit) and 60% by DiBenedetto AS Roma LLC."

TD: "I never thought about other clubs. My rapport with Rome (city) was born in the fact at university where I studied, Trinity College, of which I'm still a member of the board, has organized a campus in Rome for over 25 years. It's a marvelous city. To be able to represent it in the world with a business vehicle and passion such as Italian football is so important for me. It will be a great opportunity."

TD: "I repeat: The objective is to make AS Roma one of the top clubs in the world. A team in which the city can always be proud, but obviously, it will take time."

You will be the President but not the only subject involved in the operation. Can you tell us a little more about your partners? How will they be involved?

TD: "They are my friends. All are business owners or successful managers with the neccesary economic resources for this operation. All are fascinated by this project.

James Pallotta, one of the owners of the Boston Celtics, will put into play his sporting competencies. He has already closely evaluated the potential of the team. Michael Ruane boasts a successful career with investment funds and in the real estate sector. He'll be involved above all in the new stadium project. Richard D'Amore is an expert in new media and will act to develop that sector."

"The Italpetroli Company announces that in the process of exchange in control of A.S. Roma, it was decided to proceed in an exclusive negotiation phase with the American group, DiBenedetto AS Roma LLC that, as previously was communicated, made the most competitive offer from all those received.

In such a context, on today's date, the administrative adviser of Roma 2000 S.R.L., the group wholly controlled by Italpetroli that holds the control of A.S. Roma, had deliberated, also on the basis of the information received from the Rothschild advisers, to allow such a potential acquiring party an exclusive negotiation for a period of 30 days."

"We intend at first to begin our project of growth that looks to evaluate the organization and the team. Not losing sight of the fact that we will act as custodians of this great team in the name of the citizens of Rome and all of the fans of AS Roma."

"After the Red Sox baseball team, the Celtics basketball team. For those familiar with professional sport, the top level. Because if before there were five partners, after the possible defection of Arthur Falcone, five have remained. The American partners are a step away from the acquisition of AS Roma. The name that up until yesterday was unknown was that of James J. Pallotta, 53, partner of the Boston Basketball Partners LLC who in 2002 acquired the iconic Boston basketball team for US $700 million, a trademark known all over the world."

"If they bring money, let them come!" commented Sergio Rosi, the president of the Roma Club Testaccio, a historic enclave of AS Roma fans.

"The world changes, he adds, but we can't go backward. They are not a group from the world of soccer but they have know how. The Americans must understand one thing: Don't buy only the team but the image of AS Roma that we take around the world."

Rosi, the President of the club since 1968, confessed that he had already purchased an American flag.

"We are a little skeptical, but it's normal to be in the beginning. But I'm ready to attach the American flag to the club if the deal is confirmed." Then he tried to add, with an emotional tone: "The image of Sensi and Viola (a former Roma owner) will remain in our hearts. They were great men. They are part of Roma."

Organized fan groups play important roles at Italian clubs in ways that American sports owners need to understand and cultivate.

Breaking News According to Bloomberg News on 3 February 2011, one of the principals in the DiBenedetto group, Julian Movsesian, provided enthusiastic comments to Alex Duff and Sonia Sirletti:

“We are in, we could be the proud owners in two weeks” after legalities are finalized, Movsesian, who is president of Succession Capital Alliance, said from Newport Beach, California. “We are going to work on the details. I’m pretty excited.”

"It could be an epic turning point, such is the news that is clamorous. In the meeting that UniCredit organized with the adviser, Rothschild and the Roma group (Roma 2000), headed by Rosella Sensi, the offer made by Thomas DiBenedetto has been chosen for the future of Roma. It was considered the most qualified and competitive of the other four.It is not yet an official sale. It will probably be within a week at the most when the Americans will have presented the details that were requested today by the bank."

"I know the French entrepreneur that made the offer for Roma. He is a rich person that has serious intentions. This man, in comments Candela made with 'Radio Mana Mana', has outlined an ample and detailed project, of approximately 50 pages. I read it with attention. If a goal is scored (he used a soccer term), it would be a great opportunity for the city of Rome."

"On 31 January 2011, five offers were tendered, presently being examined by the office of the financial adviser and by legal consultants to verify the formal forecast criteria by the mentioned procedure...

Compagnia Italpetroli is not in the position to provide information about the identity of the bidders. However, with specific reference to the relative disclosures about the offer made on the part of the Aabar Fund, it is confirmed that such an investor did not take part in the process nor tendered any offer. It is highlighted that, more ever, the news that appeared about the economic details concerning the offers were in the most part made in error."

"I can confirm that the recent talks and press speculation about Aabar's interest to buy AS Roma are unfounded," Mohamed Al-Husseiny, the chief executive officer of the Abu Dhabi government investment vehicle, said in a statement.

According to La Gazzetta dello Sport on 1 February 2011:

AS Roma manager, Claudio Ranieri, is not very happy and feels Roma is falling behind to Inter and AC Milan in the transfer market:

"No, I don't give something extra for a new ownership group. I have always given the utmost for everyone, for myself, the players and AS Roma. At 60 years of age, it's difficult to be under scrutiny. I already know my strengths and weaknesses. If I won't be able to figure in the projects of the future owners, it wouldn't bother me. I've done my part."Note: Mr. Ranieri is a native of Rome and supported the team as a child.

How Many Bidders?According to the AS Roma official website on 31 January 2011:

"On the request of 'Consob,' the ItalPetroli Company has noted that on today's date, in the matter of the process to transfer the participation of control of AS Roma, binding offers have been received and are being officially noted. Such offers in the next few days will be objects of examination on the part of ItalPetroli, assisted by its own 'advisor.' The examination of the binding offers will take place based upon not only quantitative but qualitative criteria."

According to "Domenica Sportiva" on 30 January, which is a respected television program that focuses on Italian soccer, there are three bidders for AS Roma:

Thomas DiBenedetto et al

Giampaolo Angelucci, an Italian entrepreneur who expressed interest in the past.

The Aabar Fund of Abu Dhabi

Fulvio Collovati, a match commentator at RAI and also at "Domenica Sportiva," said the following when asked about the American bid:

"I don't see how they can manage a team remotely. Players need to see and interact with the owners. Not abstract groups or 'funds'."

Collovati won the World Cup with Italy in 1982.

Italian media and fans expect soccer team owners to have a good grounding in the sport, give frequent interviews, be controversial and spend a lot of "face time" at training facilities/stadiums.

For example, Silvio Berlusconi, owner of AC Milan and also the Italian Prime Minister, can discuss nuances such as the "Christmas Tree" formation. He also appears in the entrance tunnels before and after games in Milan to congratulate his own players along with the opposition.

"Mr. DiBenedetto (his family is originally from Abruzzo) a few months ago decided to make an attempt at European football, in particular, Italian calcio. When the name of Roma came up, the adventure began, backed by a few dear friends who in those days had communicated to him about buying Liverpool.

DiBenedetto has a great deal of experience behind him and a high-quality education. He has an M.B.A. from the Wharton School of Business and a B.A. with honors taken at Trinity College in Hartford, Connecticut. A bachelor's degree is the equivalent of an Italian college diploma."

"Shortly, the meeting in New York between UniCredit (Roma investors) and the American group headed by Thomas R. DiBenedetto of the Boston Red Sox will resume to value the acquisition of AS Roma. In particular, the parties are making a comprehensive analysis of the situation to understand how the binding offer can be made by January 31, 2011."

"At the side of DiBenedetto, who was born in 1950, is married and the father of five children, with evident Italian origins, there will be four other investors and those close to the deal name the President of an insurance company, Succession Capital Alliance, Julian Movsesian, realtor Michael A. Ruane of Ta Associates Realty and Arthur J. Falcone of a similar real estate firm with headquarters in Florida."

The TA Associates Realty website has office locations in Boston and Newport Beach, CA. The name of Michael A. Ruane indicated by the Italian source, "La Roma 24," was not listed after my attempts to locate more information about him. No directors or owners at this firm are listed on their website to the best of my knowledge.

According to La Gazzetta dello Sport on 28 January, there are five partners (The newest name is only given as "D'Amore" but perhaps is Richard D'Amore.) "I tecnici del consorzio statunitense (sono in cinque, DiBenedetto, Ruane, D'Amore, Movsesian, Falcone) lavoreranno anche alla futura struttura del club".

"The heads of the American consortium (there are five, Di Benedetto, Ruane, D'Amore, Movsesian, Falcone), will work also on the future structure of the club."

"The team of investors is diverse. The head of the group is from Boston and already a shareholder with the Red Sox. The others have interests in varied sectors, from telecommunications to building to insurance agencies. They have a long-term project: They want to make AS Roma a modern 'media company.' "

Original article from March 18, 2008According to the Gazzetta dello Sport, the American clothing and sports entrepreneur, John J. Fisher, is prepared to make an offer for AS Roma.

Mr. Fisher, who already owns the clothing giants The Gap and Banana Republic, also has ownership interests in the Oakland Athletics (MLB), San Jose Earthquakes (MLS), and Celtic Glasgow (3.4% of the shares in the Scottish club since late last year).

La Gazzetta quoted figures of 250 million euros, along with taking over 370 million euros in debt. According to the article, Mr. Franco Sensi would remain the honorary President of Roma. His daughter, Rosella, presently runs the daily operations.

"King of Casual - For some months, John wants Roma. John J. Fisher, the "J: is for Joseph, in honor of the pediatrician who saved his life. A Californian from San Francisco, age 46, last child of Donald, the founder of Gap and Banana Republic, two colossal firms of American casual wear, with a personal net worth that Forbes has estimated at 1.5 billion dollars. He is an American magnate that has decided to invest in Italian soccer, choosing Roma, a name and brand known throughout the world better than his shirts."

You will also find a review about Carlo Ancelotti's excellent book on tactics and Massimiliano Allegri's first literary project. There are excerpts from a factual novel about the Juventus and Azzurri legend, Gaetano Scirea, by Gianluca Iovine. Lastly, a detailed look at Francesco Totti's humorous yet historical guidebook on ancient Rome.

There are also two reviews with sporting themes outside of football:"30 su 30"by La Gazzetta dello Sport's NBA reporter (he used to cover the Azzurri and Juventus for the same newspaper), Riccardo Pratesi, and "Con la testa e con il cuore si va ovunque" by Paralympian, Giusy Versace, who was a TV presenter on a football-themed program (Domenica Sportiva) and is now a member of the Italian Parliament.

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Image credit: Viking.

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